A newly formed company, Hybar LLC, announced that it has started construction on its technologically advanced, environmentally sustainable scrap metal recycling steel rebar mill project. The mill is being built on a 1,300-acre site in northeast Arkansas, furthering Arkansas’ leadership position as home to North America’s most advanced and environmentally sustainable steel making facilities.
“Mississippi County is the centerpiece of Arkansas’ booming steel industry and Hybar’s announcement that they are beginning construction on their new facility only cements that fact. Soon, the county will produce more steel than any other in the country. My administration is investing in career and technical education, expanding our workforce, cutting red tape, and lowering taxes to make even more projects like this one possible in the Natural State,” said Governor Sarah Huckabee Sanders.
“The Hybar project was a team effort involving state, regional and local government leadership, our management team, and many others to get to today’s announcement,” said Dave Stickler, Hybar’s chief executive officer. “I have been involved in several greenfield and expansion steel industry projects in Arkansas over the past eight years, and I know firsthand what a business-oriented, can-do state Arkansas is. Many thanks to Governor Sanders and her team.”
“We are proud that Hybar has chosen to call Arkansas home. Very soon, Mississippi County in northeast Arkansas will produce more steel than any other county in the nation. That only happens with strong partnerships at the state, local and private sector levels working together as a team. The business climate in Arkansas, led by Governor Sarah Huckabee Sanders, continues to reduce taxes and regulations and has placed workforce development solutions at the forefront of every economic development project,” said Secretary of Commerce Hugh McDonald. “We thank Hybar for its decision and making a significant contribution to the state’s economic growth and look forward to a long partnership.”
Entergy Arkansas will be supplying electricity to Hybar under a special rate contract that includes renewable power generation. The Arkansas Teacher Retirement System is supporting the project by providing various forms of financing to Hybar.
“Entergy Arkansas is pleased to partner with Hybar and provide clean energy to the growing, sustainable steel industry in Northeast Arkansas. We appreciate the hard work of the Governor and her team, the City of Osceola, and the Arkansas Public Service Commission in helping make this project happen. I also want to thank Dave Stickler and his team for continuing to believe in and invest in our great state with advanced manufacturing and high paying jobs,” said Laura Landreaux, president and chief executive officer of Entergy Arkansas.
Hybar has committed to creating no less than 140 direct jobs that pay on average no less than $125,000 annually and 60 independent direct jobs that pay an average of $75,000 annually.
“Congratulations to Hybar on today’s significant project milestone,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “Companies like Hybar have made Arkansas a national leader in the steel production industry. We are thankful for the company’s commitment to creating 200 high-paying jobs in Mississippi County, and we look forward to celebrating the company’s success for years to come.”
The $700 million of financing raised in support of the Hybar project includes a $330 million issuance of twenty-five-year bonds. The Arkansas Development Finance Authority acted as the conduit issuer of the bonds, the proceeds from which were loaned to Hybar. Goldman Sachs & Co. LLC served as lead underwriter for the offering and Truist Securities and Crews & Associates, Inc. acted as co-managers. Mitchell Williams served as local counsel to Hybar.
Mark Conine, president of Arkansas Development Finance Authority added, “The job creation and overall economic impact to Northeast Arkansas is going to be tremendous. It is an exciting time to do business in Arkansas.”